The National Payments Corporation of India (NPCI) has announced an increase in the Unified Payments Interface (UPI) transaction limit from Rs 1 lakh to Rs 5 lakh for specific categories, including tax payments, hospitals, educational institutions, Initial Public Offerings (IPOs), and the Reserve Bank of India’s (RBI) retail direct schemes. This change will take effect starting from September 16, 2024, and will enable users to conduct higher-value transactions more seamlessly through UPI in these categories.
This development comes after the Reserve Bank of India (RBI) revealed in its recent monetary policy statement that the transaction limit for tax payments through UPI would be raised. The move is seen as a strategic step towards further integrating digital payments into everyday financial activities, particularly for high-value transactions. The increased limit is expected to benefit individuals and businesses alike by allowing them to use UPI for larger payments, thus enhancing convenience and efficiency across key sectors.
By expanding the transaction cap, NPCI aims to cater to the growing demand for higher-value transactions, which are becoming increasingly common, especially in the context of tax payments and other essential services. This is also expected to support the government’s push for digital financial inclusion and contribute to a cashless economy. The new limits will make it easier for users to make substantial payments without needing to rely on traditional banking channels, streamlining the process for high-stakes transactions like IPO investments and direct retail schemes from the RBI.
Both NPCI and RBI have been at the forefront of promoting UPI as a secure, fast, and user-friendly payment system, and this enhancement underscores their commitment to adapting to the evolving needs of users and the market.
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